October 12th - Tech Stocks, SONC

Cramer started out by talking about the move of money from oil to tech and retail and recommended the following tech plays:

Motorola Inc. (MOT)
Oracle Corp. (ORCL)
Microsoft Corp. (MSFT)
Adobe Systems Inc. (ADBE)
Cisco Systems, Inc. (CSCO)
QUALCOMM Inc. (QCOM)
Google Inc. (GOOG)
Apple Computer Inc. (AAPL)

These are large cap tech plays and although MOT, ORCL, CSCO, and MSFT posess nice prices for shorting, I'm not interested in shorting any of these personally based soley on a Cramer recommendation because they are simply too big for Cramer to influence long enough to create a good opportunity.

Next Cramer looked at a move considered crazy by the street at Sonic Corp. (SONC) where they are doing a dutch auction to buy back their own stock at a higher price than the stock is trading at.

Closing Price: $22.49
After Hours High: $23.09
Percent Increase at High: 2.7%
Price Level Off Point: $23.00
Percent Increase at Level Off Point: 2.3%
Trades on NASDAQ
Sector: Services
Short %: 6.52%
Days to Cover: 8.8
% Held By Insiders: 4.14%
% Held By Institutions: 90.00%

Ok, so Cramer says the company is going to be buying back these shares in the open market at $23.00 per share, which is right were we are trading after hours. I'm not sure when this purchase is going to take place exactly but it will likely pin the price at $23.00 tomorrow morning I would think, even though it was 50-cents below that today and the news came out on Monday. Cramer's rational here is that the stock will go up after the buyback since it will reduce the shares outstanding not to mention the possible expansion the company could do. It would seem logical to short anything considerably above $23 tomorrow morning if that were to happen, but since I don't know all the facts about this buy back I would do some homework before jumping into a short.